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Minimum Wage in the Republic of the Marshall Islands (RMI)

This Technical Note, prepared by the Graduate School USA's Economic Monitoring and Analysis Program (EconMAP) team, reviews establishment of an appropriate minimum wage in the Republic of the Marshall Islands (RMI) based on the Basic Needs Poverty Line (BNPL). It outlines the need for a revised minimum wage policy to safeguard urban living standards due to the inadequacy of the current rate of $3.00 per hour. Through comprehensive analysis, including the use of data from the Household Income and Expenditure Survey (HIES) and inflation calculations, the note indicates and RMI minimum wage reaching $5.25 per hour would be well-justified on social protection grounds. Such an adjustment would elevate urban living standards above the poverty line while balancing the impact on inflation and private sector costs. Finally, the document suggests that alternative mechanisms, such as a Universal Basic Income, might be necessary to address the needs of outer atoll communities.

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https://pitiviti.org/storage/dm/2024/03/rmi-technote-minwage-mar2024-digital-remediated-20240318225025296.pdf

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Minimum Wage in the Republic of the Marshall Islands (RMI)

document detail posted at of Minimum Wage in the Republic of the Marshall Islands (RMI)Posted Mar 18, 2024

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This Technical Note, prepared by the Graduate School USA's Economic Monitoring and Analysis Program (EconMAP) team, reviews establishment of an appropriate minimum wage in the Republic of the Marshall Islands (RMI) based on the Basic Needs Poverty Line (BNPL). It outlines the need for a revised minimum wage policy to safeguard urban living standards due to the inadequacy of the current rate of $3.00 per hour. Through comprehensive analysis, including the use of data from the Household Income and Expenditure Survey (HIES) and inflation calculations, the note indicates and RMI minimum wage reaching $5.25 per hour would be well-justified on social protection grounds. Such an adjustment would elevate urban living standards above the poverty line while balancing the impact on inflation and private sector costs. Finally, the document suggests that alternative mechanisms, such as a Universal Basic Income, might be necessary to address the needs of outer atoll communities.

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https://pubs.pitiviti.org/rmi-min-wage

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